US debt outsourcing to India

Outsourcing U.S. Debt Collection to India Growing, NYT Says
2008-04-23 22:05 (New York)

By Khaleeq Ahmed
April 23 (Bloomberg) -- Collection of U.S. debts by Indian firms is a growing business for outsourcing companies as America's economy slows and consumers have difficulty paying for purchases, the New York Times said.

Debt collectors in India cost about a quarter of those in the U.S. and frequently do a better job, the newspaper said, citing debt collection company executives.

Encore Capital Group Inc., a San Diego-based company, said about half of its collection force of more than 300 work in India, the Times said. Encore's chief executive, J. Brandon Black, said the only place it will grow this year is India, according to the newspaper.

Currently a fraction of U.S. debt collection is done outside the country, the Times said. New business is in the pipeline, it said.

Tiger Tyagarajan, executive vice president at Genpact, a spinoff of General Electric with roots in India, said financial services clients are asking the company to analyze their debt and change the way they sell loans, the newspaper said. Genpactemploys debt collectors in India, Romania, Mexico and the Phillippines, the Times said.

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For related news:
Stories on Indian companies: {TNI INDIA COS }
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--Editors: Elizabeth Wollman, Sau Chan

To contact the reporter on this story:
Khaleeq Ahmed in San Francisco at +1-650-745-5599 or kkhan8@bloomberg.net

To contact the editor responsible for this story:
Elizabeth Wollman at +1-415-617-7138 or
ewollman@bloomberg.net

[TAGINFO]
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NI LOANS
NI CONS
NI FIN
NI SUM
NI US
#<109539.500134.1.0.77.20164.25>#-0- Apr/24/2008 02:05 GMT